Cinemas, opera house to boost opportunities for Jeddah developers

Saudi Arabia’s expanding entertainment sector provides fresh opportunities for developers in Jeddah to invest in new and diversified sectors, real estate consultancy JLL said in a recent report.

“The announcement of the Jeddah Opera House, and the subsequent development of cinemas and cultural centers will introduce further investment opportunities for international and local companies, looking to move into new sectors,” said Craig Plumb, head of research (MENA) at JLL.

These projects are aimed at diversifying Jeddah’s visitor base, which is expected to see a growing mix of corporate, leisure, local and gradually international visitors, creating further demand for hotels in the market, according to the report.

“The Kingdom is now in its implementation phase of the Saudi Vision 2030, which aims to diversify the economy from oil dependency, by increasingly investing into the tourism and other sectors,” Plumb said.

“Developments in the entertainment, art and cultural sector will improve the sentiment across all categories of the real estate market,” he added.

Vision 2030 is focuses on the diversification of the economy, resulting in a rigorous process of reforms being introduced, and paving way for developers and investors to venture into newly established sectors.

In May, Jeddah hosted the Makkah Region Economic Forum announcing investment opportunities in Makkah. With Jeddah being the gateway city to Makkah, such initiatives will create an attractive business environment and stimulate further investment within the region, JLL said.

Jeddah also is a major business center of the country’s western region and will benefit most from increased office demand resulting from higher levels of investment, it added.

In the second quarter of this year a number of notable residential developments were handed over in Jeddah, and more completions are expected later this year.

Plans for the Obhur Bridge by Jeddah Metro, will reduce travel distances towards major hubs and business centers, making the northern suburbs a more desirable destination to live.

The entertainment sector also has a direct impact on the retail sector, with the first permanent cinema planned for the Red Sea Mall in Jeddah.

Vox Cinemas will be investing in the mall, with operations set to commence in Q1 2019, JLL said.

The retail sector will also benefit from a number of new cinemas resulting from the agreement signed earlier this year between Vue Cinemas and Al Hokair Holding Group, it added.